On Friday Nestle shot up to close above Rs 6500 for the first time in the past 2 months gaining as much as 6% in a single day.

The big news is that three government-accredited laboratories found samples safe for human consumption. This means that they Maggi would be ready for the production shortly. The laboratories found that 100% of the samples i.e. 90 samples which consists of six variants of Maggi noodles sent for testing are found to pass the test. Nestlé India said in a statement on Friday, adding actual sale would start “only after the newly manufactured products are also cleared by the designated three laboratories”.

Members may recall that just 2 weeks back we had written that we are buying following stocks:

Tata motors

Nestle

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Both the stocks shot up to higher levels making our members richer. Tata motors shot up more than 30% in the last 3 weeks which should make the invetsors pretty happy now. These stocks are safer now if you had bought it about 3 weeks back and they would continue to do well in the coming days albeit with some correction.

Last week Infosys and TCS announced good results but with the ridder on the future warnings on profit growth. LIC housing finance announced a fabulous results and it posts gains compared to the last year Q2. This large cap too could do well in the coming days but our members have bought the stock when it was trading at Rs 280!

Let us watch the show and inform you more about the market. One good thing is that Nifty reclaimed back above 200 days moving average for the first time in the last 2 months. The results session holds the key and we expect some global indicators too may influence the movement of Nifty in this week. Last week we wrote that the higher advance tax collection and the rate cut by RBI would help the bulls. We continue to remain bullish albeit with bouts of correction. Bulls may make a killing in some of the value stocks. It is the duty of the investors to find such stocks and ride the bull. The success of Tata motors and Nestle would linger in our memory for a longer period.